AI Law Regulations in EU & US

Every time new technologies enter our lives, we must become pioneers and adapt to the new rules of the game. AI is not an exception. This innovation has already made its way into every sphere, from entertainment to science. Moreover, there are countless ways to use AI in real-life business. However, AI cannot remain unregulated without specific frameworks and rules. If such a powerful tool appears in the wrong hands, it can be used for selfish or harmful purposes.

The prospect of AI being used in deep fakes, fraud, and theft of personal data or intellectual property is not just concerning but an urgent issue. The Center for AI Crime reports a staggering 1,265% increase in phishing emails and a nearly 1,000% rise in credential phishing in the year following the launch of ChatGPT. This highlights the urgent need for AI regulation.

In response, significant regions such as Europe and the US have started developing principles regulating AI to protect their citizens, companies, and institutions while maintaining technological development and investment. The regulations contain critical nuances that must be considered when developing or implementing AI technologies. In this blog, we will explore and compare European and American AI regulations.

The EU AI Regulation: AI Act

Regulation on a European approach for AI

The AI Act by the European Union is the first global and comprehensive legal framework for AI regulation. Basically, it is a set of measures aimed at ensuring the safety of AI systems in Europe. The European Parliament approved the AI Act in March 2024, followed by the EU Council – in May 2024. Although the act will fully take effect 24 months after publication, several sections will become applicable in December 2024, primarily focusing on privacy protection.

In general, this act is similar to the GDPR — the EU’s regulation on data privacy — in many respects. For example, both cover the same group of people — all residents within the EU. Moreover, even if a company or developer of an AI system is abroad, if their AI software is designed for the European market, they must comply with the AI Act. The regulation will also affect distributors of AI technologies in all 27 EU member states, regardless of where they are based.

The risk-based approach of the AI Act is comparable to the GDPR’s. It divides AI systems into four risk categories:

  • The minimal (or no) risk category is not regulated by the act (e.g., AI spam filters).
  • Limited-risk AI systems must follow transparency obligations (e.g., users must be informed when interacting with AI chatbots).
  • High-risk AI systems are strictly regulated by the act (e.g., using AI systems to enhance critical infrastructure).
  • Unacceptable risk is prohibited (e.g., biometric categorization).

Non-compliance with certain AI practices can result in fines of up to 35 million EUR or 7% of a company’s annual turnover.

The US AI Regulation: Executive Order on AI

Although the United States leads the world in AI investments (61% of total global funding for AI start-ups goes to US companies), its process for creating AI legislation is slower and more disorganized than the EU’s. There is no approved Congress policy on AI systems regulation in the US for now. However, the White House issued an Executive Order (EO) on Safe, Secure, and Trustworthy Artificial Intelligence in October 2023. It sets federal guidelines and strategies for fairness, transparency, and accountability for AI systems. As with the AI Act, the EO aims to balance AI innovation with responsible development. 

The AI Executive Order also focuses on guiding federal agencies in implementing AI systems and outlines a series of time-bound tasks for execution. It directs federal agencies to develop responsible AI governance frameworks. The National Institute of Standards and Technology (NIST) leads this effort by setting technical standards through its AI Risk Management Framework (AI RMF). This framework will shape future guidelines while aligning with industry-specific regulations. Federal funding priorities further emphasize AI research and development (R&D) to advance these initiatives.

The most important thing to mention about EO is that it does not have the same enforcement power as a law. Instead, EO should be viewed as a preparatory stage of AI regulation, and its recommendations should be gradually implemented if you plan to work in the US market. For example, any AI software development company should start conducting audits, assessments, and other practices to ensure their safe approach.

Comparison Table

Legal Force:

The AI Act will become a binding law across all EU member states once 24 months pass. After that, mandatory compliance will be required from everyone providing AI systems in this region. In contrast, the US Executive Order has less legal force. It sets essential guidelines for federal agencies, but it lacks the binding legal authority of a law passed by Congress. The EO’s enforcement is limited to federal government activities and impacts the private sector less. Thus, even a change of president can provoke future revocation.

Regulatory Approach:

The AI Act applies to all AI systems, categorizing them  from unacceptable to minimal risk to ensure that every AI system across industries falls under specific regulations. The US OE focuses on sector-specific regulations, targeting high-impact industries like healthcare, finance, and defense. While this approach fosters innovation, it may lead to inconsistent risk management across sectors.

Data Privacy:

The AI Act uses practices from GDPR to enforce strict rules around data processing, privacy, and algorithm transparency. The US privacy regulations remain fragmented, with state-level laws such as the CCPA and BIPA applying at the state level but no federal AI-specific privacy law.

Ethical Guidelines:

The EU AI Act emphasizes ethical AI development, focusing on fairness, non-discrimination, and transparency. These principles are embedded within the legislation. The US Executive Order promotes similar values but through non-binding recommendations rather than legal mandates.

Support for Innovation:

The EU AI Act aims to balance strict regulation with promoting innovation, offering AI research and development incentives within an ethical framework. These actions help foster AI innovation while ensuring public safety. The US supports innovation through federal funding and AI research initiatives, but companies have more flexibility to self-regulate and innovate without the stringent compliance measures seen in the EU.

Conclusion: Challenges of Current AI Regulations

The EU and the US face global challenges in balancing AI regulation and innovation. The EU AI Act imposes numerous restrictions that limit the possibility of developing revolutionary AI software, while the US EO, although offering more flexibility and encouraging innovation, lacks comprehensive regulations. The evolving nature of AI technology makes it difficult for regulations to keep pace, and businesses must navigate complex compliance requirements across different regions. However, for developers working on projects, adhering to these regulations is crucial to avoid legal risks and ensure the ethical use of AI.

At Devtorium, we help businesses navigate these challenges by ensuring compliance with the necessary AI regulations. Our team can guarantee that your AI solutions meet both EU and US standards, allowing you to focus on innovation. For more details, contact us today and let Devtorium’s experts guide your AI development toward full regulatory compliance.

If you want to learn more about our other services, check out more articles on our website:

Generative AI Comparison: Best AI Models Available in 2024

AI is a revolutionary technology, and its rapid growth is why you need some generative AI comparison sources right now. This tech has spread and evolved so fast that it’s hard to understand exactly what the solutions available on the market are capable of. Despite having some similar functionality, generative AI tools differ quite a bit. So, read on to learn the best time to use each top AI model.

Who Needs This Generative AI Comparison Guide?

If you use the Internet today, you will benefit from reading this simple guide on AI model comparison. This technology is quickly spreading to different areas of our daily and, most of all, professional lives. Therefore, knowing which AI tool to use and when is key to staying ahead.

There are numerous areas of business where  you can implement AI, so you will definitely find ways to use this technology to boost your outcomes.

Today, the market provides a variety of large language models (LLMs). Each of them has different tools and capabilities. Some are best used for coding only, while others perform exceptionally well in creative tasks. As a result, it’s pretty confusing and complicated to pick the right AI tools for your purposes. That’s why Devtorium R&D experts prepared this short guide on four of the most effective LLMs and their best use cases.

Comparison of Generative AI Tools: Benefits and Uses

Generative AI comparison guide.

ChatGPT

ChatGPT stands for “Chat Generative Pretrained Transformer.” OpenAI developed this LLM and currently offers three models: GPT-3.5, GPT-4, and GPT-4o.

  • Chat GPT-3.5 is a free version that anyone can access. However, it has many limitations, like no image input or complex task processing.
  • Chat GPT-4 is a $20/month subscription version designed for professional use. The model has excellent contextual understanding and creative reasoning. Among its drawbacks is slower task processing speed due to model complexity.
  • Chat GPT-4o (or ChatGPT-4 Turbo) is a brand-new version of ChatGPT-4 that offers similar capabilities but is cost-efficient and speed-optimized. This tool has free and paid plans with varying limits. Also, among its inputs can be text, images, audio, and video. Even though GPT-4o has a bit worse context retention than Chat GPT-4, this model still balances exceptional outputs with processing speed.

Best ChatGPT applications:

  • Cost-effective solution
    For budget-conscious projects, models like ChatGPT-4o offer a balance between performance and affordability.
  • Hard prompts
    Advanced versions like ChatGPT-4o would be effective if complex or nuanced responses are necessary. Moreover, according to the LMSYS Chatbot Arena Leaderboard, the best hard prompt performance out of 126 AI models shows ChatGPT-4o.
  • Longer queries
    ChatGPT excels at understanding context and coherence across extended conversations, making it ideal for in-depth discussions or multi-step tasks.
  • Versatile applications
    From creative writing to code generation, ChatGPT developed its available functions evenly.

Claude

Not a common name in most AI comparison guides, Claude is a family of AI language models developed by Anthropic. These LLMs focus on providing safe AI interactions. Claude 3 Haiku, Claude 3 Opus, and Claude 3.5 Sonnet are among the models currently available to general users.

  • Claude 3 Haiku has the highest response time of all Anthropic models. It’s ideal for concise prompts and fast tasks. It’s also more affordable compared to others. However, it has limited creative capabilities and contextual understanding. It’s best suited for mobile application chatbots and instant messaging.
  • Claude 3 Opus is a mid-range AI tool with moderately fast latency. It balances creativity and accuracy, offering strong contextual retention and versatility.
  • Claude 3.5 Sonnet is the first release in the forthcoming Claude 3.5 model family. It’s one of the most advanced Claude models at the moment. This model is outperforming competitors in different spheres. However, it meets the same problem as Chat GPT-4: slower workflow speed due to more complex processing for richer output. Claude 3.5 Sonnet is now free on Claude.ai, while Claude Pro and Team plan subscribers can access it with significantly higher rate limits.

Best cases to use Claude:

  • Code generation
    Claude 3.5 Sonnet generates optimal, almost bug-free code across 20+ languages, optimizing for project-specific needs and best practices. Also, according to the LMSYS Leaderboard, Claude 3.5 Sonnet is the best coding and math task-solving AI today.
  • Visuals analysis
    Claude 3.5 Sonnet can analyze images, documents, and PDFs, extracting essential information for diverse tasks. It’s free with basic features, but paid plans offer enhanced capabilities and higher usage limits.
  • Ethical AI applications
    Every Anthropic’s model is built on nuanced AI principles, prioritizing safety. It also means that all responses Claude provides must adhere to them. Claude is forthright about its limitations and potential biases, promoting responsible AI use.
  • Complex decision-making
    Claude can handle intricate scenarios with multiple variables. Moreover, it is ideal for tasks that require deep contextual awareness.

Meta LLaMA 

LLaMA (Large Language Model Meta AI) is an open-source LLM developed by Meta. Its main feature is its small resource intensity, which enables researchers and developers to meet complex requests on smaller hardware. At the moment, Meta offers three models of LLaMA: LLaMA 2, LLaMA 3, and LLaMA 3.1.

  • LLaMA 2 is a free-to-use OSS model of AI. It is the first openly available LLM instruction-tuned for text. It’s also great for commercial use if you struggle with huge budgets. However, this model is a bit outdated, so you can find inexpensive alternatives that provide higher performance.
  • LLaMA 3 is the next generation with some significantly upgraded features. This model is multilingual and has high prompt understanding. Unfortunately, it delivers bad performance in reasoning and math.
  • LLaMA 3.1 is a recent model built on LLaMA 3. It has improved reasoning and coding capabilities. Also, LLaMA 3.1 is the largest openly available model right now. So, if you want the best free-to-use AI model, this one will be a top hit according to our AI comparison.

When to use LLaMA:

  • Commercial applications
    This AI model is ideal for many business applications without additional costs.
  • Meta integration
    LLaMA can be easily integrated into Meta AI, Facebook, Instagram, and WhatsApp, providing advanced AI capabilities for content generation, customer interaction, and personalized user experiences.
  • Multimodal tasks
    The model offers robust support for diverse languages and media formats, making it a versatile tool for global and cross-platform applications.
Comparison of generative AI models on the market

Gemini

Gemini is an AI model developed by Google DeepMind. It is positioning itself as a competitor to advanced LLMs like GPT-4. Four Gemini models made it to our I comparison guide: Gemini Ultra, Gemini Pro, Gemini Flash, and Gemini Nano.

  • Gemini 1.0 Ultra is Google’s largest model, designed for complex AI tasks. It offers maximum computational power for enterprise-level solutions and advanced AI research. This AI tool is great for advanced app integration.
  • According to ratings, Gemini 1.5 Pro is the best Google AI model. It excels in general performance across a wide range of tasks. Gemini Pro can process hard prompts and follow instructions almost perfectly, making it suitable for professional-grade tools and large-scale applications.
  • Gemini 1.5 Flash is a lightweight model of Gemini Pro designed for fast data analysis.
  • Gemini 1.0 Nano is the most powerful on-device model available. It is ideal for mobile apps, IoT devices, and edge computing with minimal resource usage.

Top Gemini use cases:

  • Overall best app
    Currently, Gemini 1.5 Pro has the best results, outperforming all listed competitors.
  • Factual accuracy
    Google’s AI relies on enormous databases and searches, ensuring its output is reliable and trustworthy.
  • Gmail integration
    Using Gemini, you can enhance email management by providing smart reply suggestions, drafting assistance, and content generation directly within the platform.

Bottom Line: Which Model Is Best in AI Tools Comparison?

To sum it up, the current tech landscape offers a diverse range of AI solutions tailored to various business needs. From the advanced capabilities of ChatGPT and Gemini to the specialized performance of Claude and LLaMA models, each of these tools can help you.

Therefore, the best model for your specific case is the one that has the most advanced capabilities in the niche your business requires. If you want to benefit from AI integration, contact our experts for a free consultation today. We’ll help you choose a suitable AI model and develop the best implementation to enhance your business. If you want to learn more about our strengths, be sure to check our Devtorium’s case studies and verified Clutch reviews from our customers.

How to Use AI in Small Business: Ideas and Practical Applications

At this point, using AI in small business has become a mandatory requirement. There is just no other way to gain a competitive advantage. The level of competition in every industry is skyrocketing, so you must cut your costs and optimize every possible process. This is precisely what AI can do for small businesses, and we’ll tell you how today.

How many companies consider using AI in small business

Using AI in Small Business: Practical Tips from Professionals

Leveraging AI tools can be troublesome for many SMBs because they need help figuring out where to start. Devtorium offers a range of AI software development services, and our developers have expertise in implementing AI into various systems. In this post, they will demystify AI for small businesses, providing insights and examples of successful AI usage.

Bear in mind, that the majority of businesses are either already using or consider implementing AI solutions already. Take a look at stats in the graphs to see what position your company matches currently.

Let’s start with a few general tips to consider when using AI in small business:

  • Start small
    First, you should begin with only targeted AI applications that align with your business goals and resources. For example, if you have an e-commerce site, add a chatbot to enhance customer experience.
  • Data quality matters
    For AI to work accurately, you must be sure that training data is clean and relevant. It’s crucial for minimizing the risk of bias in AI outcomes.
  • Monitor your ROI
    Your BA must analyze all AI projects’ return on investment (ROI) to ensure they deliver value to your business.
  • Collaborate with experts
    Partner with AI specialists or consultants to navigate complex implementation challenges.
Interest in using AI for small business

Real-World Implementations of AI in Small Business

Improving Customer Experience

Adding an AI chatbot to your website or service is the best AI innovation to start with. This virtual assistant can solve many tasks, from answering users’ frequently asked questions to assisting with product recommendations based on their behavior. Moreover, chatbots can learn and adapt over time. Therefore, their accuracy and efficiency in handling customer queries will improve.

Virtual assistants can cut the workload of your human support staff. In turn, they will have time to focus on more complex tasks. Besides, these AI solutions can gather valuable data on customer interactions. Use them as an analytics tool to learn about your audience and make better-targeted business decisions. For example, you can identify trends, understand customer needs, and improve your services overall.

To start using such a chatbot, small businesses can try services like Dialogflow by that uses Google  Al. You can also try to make your own chatbot with LangChain. If you want to go to the next level, check out our case of what a voice bot can do.

Supply Chain Management

Some fantastic ways of using AI in small business that deals with logistics include:

  • Optimizing delivery routes optimization
  • Reducing transportation costs
  • Cutting down on delivery times
  • Increasing logistics efficiency

Also, you can use AI to evaluate supplier performance and manage relationships, ensuring the best terms and reliability. AI-driven supply chain management systems leverage advanced algorithms to analyze vast amounts of data and make real-time decisions that enhance operational efficiency.

AI can also enhance predictive maintenance in logistics. This is done by using data from IoT sensors to anticipate equipment failures and schedule proactive repairs. With this tech, you can minimize downtime and improve your business’s overall reliability.

Moreover, AI-powered demand forecasting models help anticipate customer needs more accurately. Therefore, businesses can adjust production schedules and inventory levels accordingly. By optimizing these processes, AI contributes to cost reduction and enhances the agility of supply chain operations.

Using AI for small businesss: Predictive analytics and security.

Predictive Analytics

One of the best ways to use AI in small business is implementing predictive analytics to analyze your past data and identify patterns. These tools enable you to forecast sales trends, which can make a crucial difference in achieving success.

Efficient use of predictive analytics can help you come up with effective strategies and prevent rash decisions. Furthermore, predictive analytics can optimize inventory management by forecasting demand and caution about overstock or stockouts.

In addition, these AI systems can analyze sales data to identify seasonal trends and customer behavior patterns. You can utilize tools like Salesforce Einstein Analytics to anticipate market shifts.

Visual content

You should consider using AI in small business marketing, especially if you don’t have a dedicated marketing team. Creating and optimizing visual content can be easy using tools like Midjourney or Photoshop’s integrated AI, creating and optimizing visual content can be easy.

For example, some tools today can personalize marketing materials based on user data, creating tailored experiences that appeal more deeply to the target audience. In addition, using generative AI can save time, money, and effort.

Integrating AI into visual content strategies helps businesses stay ahead of the competition by consistently delivering visually compelling content. These tools can streamline the design process by providing instant enhancements and creative ideas, allowing teams to focus on more strategic tasks.

Cybersecurity

One area where small businesses aren’t using enough AI is cybersecurity. You should definitely make this your priority, as data breaches are a major threat today. Implement AI-powered cybersecurity solutions to detect and mitigate potential threats in real-time. For instance, predictive threat intelligence enables AI to analyze patterns and trends in cyber attack data, forecasting where and how future attacks might occur. Using AI for small business in this particular sphere enables them to strengthen their defenses preemptively.

On other levels, AI enhances email security by detecting phishing attempts and malware-laden messages. This will significantly reduce the risk of successful social engineering attacks. Additionally, AI assists in post-incident analysis, providing valuable insights to understand the nature and scope of breaches, and informing future prevention strategies. This cycle of learning and making changes based on new data ensures that AI-powered cybersecurity solutions remain effective against an ever-changing threat landscape. 

Conclusion: how to best start using AI in small business.

Bottom Line: How to Use AI in Small Business to Get Top Value for Money

To sum it up, small businesses can and should use AI systems to automate processes, make data-driven decisions, and achieve desirable growth. As AI continues to evolve and become more accessible, embracing this technology will be essential for staying ahead of the curve. However, it is challenging to adopt AI for your needs without technical expertise and business analysis. If you want to get maximum benefit from any AI tools or even customize some of them to fit your business needs, set up a free consultation with our experts today.

Prompt Engineering Basics: How to Talk to AI

Being proficient with prompt engineering basics has become an essential skill nowadays. Many of us talk to AI almost daily. Sometimes, it’s even without our knowledge as the number of voice chatbots increases. However, today, we’ll talk specifically about how to talk to generative AI.

Generative AI prompt engineering can be a bit tricky because you aren’t just ‘venting’ to a machine or going through some customer service routines. The goal here is to word your command in such a way that you get the most accurate result. You can use the knowledge of AI prompt engineering to complete a great variety of tasks, from generating an image to developing and programming an AI voice bot.

Moreover, all of these tasks are becoming more relevant with every passing day. According to the CompTIA IT Industry Outlook 2024 report, 22% of companies insist on AI integration in the workflow. The percentage of using AI in daily work by usual employees is even higher. However, only a few know how to interact with AI most efficiently.

Our highly qualified specialists maintain that prompt engineering is the main thing that most GenAI users need to improve. So, with their help, you’ll be able to learn the basics of prompt engineering.

Prompt Engineering Basics: What Is Prompt Engineering?

Prompt engineering is creating inputs as specific instructions for large language models (LLMs, more on that here). 

Generative AI models generate specific outputs based on the quality of provided inputs. We call these inputs prompts, and the practice of writing them is called prompt engineering. 

Prompt engineering helps LLMs better process the incoming tasks to produce desired outputs.

How knowing AI prompt engineering basics benefits you.

Where You Can Apply Prompt Engineering Basics

AI software development

Prompt engineering now plays an active role in software development. You can save a great deal of time time by giving the AI model a clear prompt describing the desired functionality. It suggests code snippets or even complete entire functions. That is very helpful, especially for repetitive tasks. Trained on developer prompts, AI can also analyze existing code and identify potential bugs. If you want to read the opinion of Devtorium`s developers on AI code generation tools, check out this post.

Chatbot development

Prompt engineering allows chatbots to respond more naturally and informatively. You provide them with clear instructions and context for understanding customer inquiries. A better understanding of customer questions leads to improved chatbot responses, which means happier customers and shorter wait times. If you want to create your chatbot, read our blog about Assistant API.

Cybersecurity services

Cybersecurity is another field where understanding prompt engineering basics can help you. Security analysts can leverage prompt engineering to guide AI systems in analyzing network activity and logs. AI can efficiently scan vast amounts of data and flag potential security threats when given prompts with specific indicators of compromise (IOCs) or suspicious behavior patterns. Prompt engineering in cybersecurity empowers security professionals by harnessing AI’s analytical power to identify threats, uncover vulnerabilities, and respond to incidents.

Creative content generation

Prompt engineering allows writers to enhance their efficiency. You can give an AI model a starting point and direction for generating creative text formats like blogs, posts, scripts, or even musical pieces. This frees up the writer to focus on refining and polishing the ideas. The same goes for any kind of content, be it visuals, text, or even music.

AI prompt engineering: basics tips.

Essential Tips on Prompt Engineering Basics

Prompt engineers do not only design and develop prompts. They also operate a wide range of skills and techniques that improve the interaction and development of LLMs. Their work encompasses the following:

  • Zero-shot prompting – instructing LLM without relying on any examples.
  • Few-shot prompting – giving the model a few examples before instructing.
  • Chain-of-thought prompting (CoT) – asking the model to explain its steps every time it performs the instruction.

Here are a few tips that will help you communicate with an AI as a prompt engineer on the basic level:

  • Use clear instructions and ask direct questions. Make the sentences as concise as possible.
  • Provide LLM with context. Use any relevant data for it.
  • Give examples in prompts.
  • Specify the desired output format and length.
  • Align prompt instructions with the task’s end goal.
  • Provide the desired output with styles such as bullet points, tables, numbered lists, inline/block code, quotes, hyperlinks, etc.
  • Let the LLM answer “I don`t know” if needed.
  • Break the complex tasks into subtasks.
  • Use a clear separator like “###” to split the instruction and context.
  • Experiment a lot to see what prompts work best.

Bottom Line: Are Prompt Engineering Basics Enough to Talk to an AI?

So, to sum up, everyone who uses GenAI can learn the easiest prompts to get desired but simple outputs. However, to get more complex results, you will need to have a really good understanding of programming and mathematics. Therefore, if you need to use AI in your project as more than a simple user, contact our team for a free consultation on how to best implement its power for you!

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